Oil Prices Drop on OPEC Deal Concern

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Oil prices have ended lower on rising concerns over the extent of the OPEC (Organization of the Petroleum Exporting Countries) member countries implementing the output-cut deal….reports Asian Lite News

Oil field

OPEC reached an agreement in November to cut oil production to curb a global supply glut that has depressed prices for more than two years, Xinhua news agency reported on Saturday.

Although some countries have promised to implement the deal, there still lacks hard evidence of production reductions.

Investors also worried that the rising US oil supply might offset any reductions, which weighed on the oil prices on Friday.

The Energy Information Administration (EIA) said in its weekly report on Wednesday that the US crude oil inventories rose 4.1 million barrels last week to 483.1 million, up 7.1 per cent from 2016 at this time.

The West Texas Intermediate for February Delivery decreased $0.64 to settle at $52.37 a barrel on the New York Mercantile Exchange, while Brent crude for March delivery erased $0.56 to close at $55.45 a barrel on the London ICE Futures Exchange.